Food Cost Formula to Find Target for Independent Restaurants

food cost prime cost Mar 30, 2021

What if I told you you were asking the wrong question when you're searching for the food cost formula to find your target for your independent restaurant? If you want to know where your food cost should be to make money, I want to teach you the right question to ask and the best way to answer it.

When it comes to finding the right food cost formula to find your restaurant’s target food cost, I bet you've watched a number of videos as you’ve searched. I’m willing to bet some...

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Menu Engineering to Control Restaurant Food Cost

Menu engineering to control restaurant food costs can be one of the most powerful tools an independent restaurant can have at their disposal. If you want to make the most profit on your menu, you have to reengineer it. But menu engineering is often thought of as a way to guide your customers into ordering what you want them to order. And while there are some design tips and ways to describe your food that increase sales of the items you want to sell, most restaurant owners aren't maximizing...

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How to Run a Restaurant - the Story of a Former CFO's Journey With Systems - Podcast Episode 9

In this episode of The Restaurant Prosperity Formula podcast, host David Scott Peters talks to Steve Eller, restaurant owner of Cosmic Cowboy in Idaho and Washington. David and Steve talk through Steve’s experience adopting and working with David’s restaurant systems to learn how to run a restaurant. Steve’s story is interesting in that he was already using a lot of the systems that David teaches, but his prime cost was too high, and he was looking for the answer to why and...

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Restaurant Break Even Analysis to Increase Success of Independent Restaurants

Are you out there looking for the restaurant break even analysis to increase the success of your independent restaurant? Have all the rising costs been gobbling up your profits like a flock of pigeons on the boardwalk outside a roasted peanuts store? Are you exhausted because you've been working harder than a squirrel in a nut factory to reduce your labor costs? You feel like if you could just break even for the next six months or so, things have got to get back to normal. But you're running...

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Why Restaurant Owners Must Know the Prime Cost Formula

Prime cost is the one number you must know to make any money in the restaurant business. The prime cost formula is a measurement of your ability to be profitable and gives you information about how you can be profitable. Watch the video below, or continue reading, for three reasons why restaurant owners must know the prime cost formula.

Here are 3 reasons restaurant owners must know the prime cost formula:

Number 1 - It allows you to set your food and labor cost targets. You can set your...

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